Home Stock Stock market sentiment changed after investors' excitement pushed US stocks to record...

Stock market sentiment changed after investors’ excitement pushed US stocks to record highs.


The investors’ excitement disappeared in the US stock market.

According to a report by BofA Global Research on Tuesday, the US stock market has the largest flow since mid-November and the fifth largest since 2008. Investors have net sold US $ 5.2 billion in US stocks. retail customers were the sole buyers for the week before the S&P 500 rose to an all-time high.

Individual investors have recently had a stronger demand for equities than hedge funds and institutional investors, the BofA report found. But stock sentiment is changing, with the S&P 500 Index trading down this week alongside the Dow Jones Industrial Average and the Nasdaq Composite.

S&P 500
SPX,
-0.68%

fell 0.7% on Tuesday afternoon, after falling slightly on Monday. Dow Jones industrial average
DJIA,
-0.75%

fell 0.9% on Tuesday afternoon, while the Nasdaq
COMP,
-0.92%

the decline is about 1%, according to FactSet data.

Read: Dow slipped nearly 300 points as investors were engulfed in profit storm

It seems that hedge funds have sold well before stocks decline this week.

“Retail customers were buyers for the eighth consecutive week, while hedge fund clients sold for the third straight week, ”BofA’s equity and quantitative strategists said in their note on US equity flows last week. They said the recent 4-week average flow has “trended lower” and turned negative for the first time since mid-February during a pause due to the “increasing sentiment”.

The Dow and the S&P 500 ended last week in record high, pre-order for four consecutive weeks up.

BofA strategists wrote in a report on Tuesday: “Clients have been cyclical selling and protective agents, while passive flow remains more cyclical despite being muted. “. “The net sales last week were mainly in single stocks, while the capital inflow to the ETF was congested.”

The cyclic-oriented sectors include areas such as consumer discretion, industry, and finance, according to the BofA report. Protection covers areas such as healthcare, staples, and real estate.

“The market weakness can continue in the short term,” warned the strategist.

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